﻿<?xml version="1.0" encoding="utf-8"?><Regulation lims:pit-date="2006-03-22" lims:lastAmendedDate="2006-03-22" lims:current-date="2019-06-21" lims:inforce-start-date="2006-03-22" lims:fid="675921" lims:id="675921" regulation-type="SOR" xml:lang="en" xmlns:lims="http://justice.gc.ca/lims"><Identification lims:inforce-start-date="2006-03-22" lims:fid="675922" lims:id="675922"><InstrumentNumber>SOR/2001-424</InstrumentNumber><RegistrationDate><Date><YYYY>2001</YYYY><MM>10</MM><DD>4</DD></Date></RegistrationDate><ConsolidationDate lims:inforce-start-date="2006-03-22"><Date><YYYY>2019</YYYY><MM>6</MM><DD>22</DD></Date></ConsolidationDate><EnablingAuthority lims:inforce-start-date="2006-03-22" lims:fid="675924" lims:id="675924"><XRefExternal reference-type="act" link="I-11.8">INSURANCE COMPANIES ACT</XRefExternal></EnablingAuthority><LongTitle lims:inforce-start-date="2006-03-22" lims:fid="675925" lims:id="675925">Regulatory Capital (Insurance Holding Companies) Regulations</LongTitle><RegulationMakerOrder><RegulationMaker>P.C.</RegulationMaker><OrderNumber>2001-1795 </OrderNumber><Date><YYYY>2001</YYYY><MM>10</MM><DD>4</DD></Date></RegulationMakerOrder></Identification><Order lims:inforce-start-date="2006-03-22" lims:fid="675926" lims:id="675926"><Provision lims:inforce-start-date="2006-03-22" lims:fid="675927" lims:id="675927" format-ref="indent-0-0" language-align="yes" list-item="no"><Text>Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 1021<FootnoteRef idref="footnote1_e">a</FootnoteRef> of the <XRefExternal reference-type="act" link="I-11.8">Insurance Companies Act</XRefExternal><FootnoteRef idref="footnote2_e">b</FootnoteRef>, hereby makes the annexed <XRefExternal reference-type="regulation" link="SOR-2001-424">Regulatory Capital (Insurance Holding Companies) Regulations</XRefExternal>.</Text></Provision><Footnote id="footnote1_e" placement="page" status="official"><Label>a</Label><Text>S.C. 2001, c. 9, s. 465</Text></Footnote><Footnote id="footnote2_e" placement="page" status="official"><Label>b</Label><Text>S.C. 1991, c. 47</Text></Footnote></Order><Body lims:inforce-start-date="2006-03-22" lims:fid="675928" lims:id="675928"><Heading lims:inforce-start-date="2006-03-22" lims:fid="675929" lims:id="675929" level="1"><TitleText>Interpretation</TitleText></Heading><Section lims:inforce-start-date="2006-03-22" lims:lastAmendedDate="2006-03-22" lims:fid="675930" lims:id="675930"><MarginalNote lims:inforce-start-date="2006-03-22" lims:fid="675931" lims:id="675931">Definitions</MarginalNote><Label>1</Label><Text>The following definitions apply in these Regulations.</Text><Definition lims:inforce-start-date="2006-03-22" lims:fid="675932" lims:id="675932" generate-in-text="no"><Text><DefinedTermEn>Act</DefinedTermEn> means the <XRefExternal reference-type="act" link="I-11.8">Insurance Companies Act</XRefExternal>. (<DefinedTermFr>Loi</DefinedTermFr>)</Text></Definition><Definition lims:inforce-start-date="2006-03-22" lims:fid="675933" lims:id="675933" generate-in-text="no"><Text><DefinedTermEn>minority interest</DefinedTermEn> means an equity interest, in an entity that is controlled by an insurance holding company, that is held by a person other than</Text><Paragraph lims:inforce-start-date="2006-03-22" lims:fid="675934" lims:id="675934"><Label>(a)</Label><Text>the insurance holding company; or</Text></Paragraph><Paragraph lims:inforce-start-date="2006-03-22" lims:fid="675935" lims:id="675935"><Label>(b)</Label><Text>an entity controlled by the insurance holding company. (<DefinedTermFr>participation minoritaire</DefinedTermFr>)</Text></Paragraph></Definition></Section><Heading lims:inforce-start-date="2006-03-22" lims:fid="675936" lims:id="675936" level="1"><TitleText>Regulatory Capital</TitleText></Heading><Section lims:inforce-start-date="2006-03-22" lims:lastAmendedDate="2006-03-22" lims:fid="675937" lims:id="675937"><MarginalNote lims:inforce-start-date="2006-03-22" lims:fid="675938" lims:id="675938">Definition of <DefinedTermEn>regulatory capital</DefinedTermEn></MarginalNote><Label>2</Label><Subsection lims:inforce-start-date="2006-03-22" lims:fid="675939" lims:id="675939"><Label>(1)</Label><Text>Subject to subsection (2), the regulatory capital of an insurance holding company, at any time, is the amount determined by the formula</Text><FormulaGroup lims:inforce-start-date="2006-03-22" lims:fid="675940" lims:id="675940"><Formula lims:inforce-start-date="2006-03-22" lims:fid="675941" lims:id="675941"><FormulaText>A - B</FormulaText></Formula><FormulaConnector>where</FormulaConnector><FormulaDefinition lims:inforce-start-date="2006-03-22" lims:fid="675942" lims:id="675942"><FormulaTerm>A</FormulaTerm><Text>is the total of the amounts of the shareholders’ equity, minority interests and subordinated indebtedness that would be reported in the financial statements of the insurance holding company prepared as at that time in accordance with the accounting principles and specifications of the Superintendent referred to in subsection 887(4) of the Act; and</Text></FormulaDefinition><FormulaDefinition lims:inforce-start-date="2006-03-22" lims:fid="675943" lims:id="675943"><FormulaTerm>B</FormulaTerm><Text>is the amount of goodwill that would be included in those financial statements.</Text></FormulaDefinition></FormulaGroup></Subsection><Subsection lims:inforce-start-date="2006-03-22" lims:fid="675944" lims:id="675944"><MarginalNote lims:inforce-start-date="2006-03-22" lims:fid="675945" lims:id="675945">Restriction relating to security</MarginalNote><Label>(2)</Label><Text>In calculating the amount of regulatory capital under subsection (1), an amount may be included in respect of a security only if</Text><Paragraph lims:inforce-start-date="2006-03-22" lims:fid="675946" lims:id="675946"><Label>(a)</Label><Text>the security is, by its terms, subordinate in right of payment to all liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;</Text></Paragraph><Paragraph lims:inforce-start-date="2006-03-22" lims:fid="675947" lims:id="675947"><Label>(b)</Label><Text>the security is issued and fully paid up; and</Text></Paragraph><Paragraph lims:inforce-start-date="2006-03-22" lims:fid="675948" lims:id="675948"><Label>(c)</Label><Text>in respect of subordinated indebtedness or a preferred share, the security</Text><Subparagraph lims:inforce-start-date="2006-03-22" lims:fid="675949" lims:id="675949"><Label>(i)</Label><Text>has an initial minimum term of five years or more or has no term, and</Text></Subparagraph><Subparagraph lims:inforce-start-date="2006-03-22" lims:fid="675950" lims:id="675950"><Label>(ii)</Label><Text>cannot be redeemed or purchased for cancellation in the first five years after it is issued.</Text></Subparagraph></Paragraph></Subsection></Section><Heading lims:inforce-start-date="2006-03-22" lims:fid="675951" lims:id="675951" level="1"><TitleText>Coming into Force</TitleText></Heading><Section lims:inforce-start-date="2006-03-22" lims:lastAmendedDate="2006-03-22" lims:fid="675952" lims:id="675952"><MarginalNote lims:inforce-start-date="2006-03-22" lims:fid="675953" lims:id="675953">Coming into force</MarginalNote><Label><FootnoteRef idref="footnote3_e">*</FootnoteRef>3</Label><Text>These Regulations come into force on the day on which sections 970 and 984 of the <XRefExternal reference-type="act" link="I-11.8">Insurance Companies Act</XRefExternal>, as enacted by section 465 of the <XRefExternal reference-type="act" link="F-11.1">Financial Consumer Agency of Canada Act</XRefExternal>, chapter 9 of the Statutes of Canada, 2001, come into force.</Text><Footnote id="footnote3_e" placement="section" status="editorial"><Label>*</Label><Text>[Note: Regulations in force October 24, 2001, <Emphasis style="italic">see</Emphasis> SI/2001-102.]</Text></Footnote></Section></Body></Regulation>